The ROI of rewards: justifying incentive travel to your CFO

Incentive travel is the ultimate reward, and although at face value there’s a higher cost, a deeper look shows that it pays for itself.

CFOs and other business leaders may look at the price of incentive travel and baulk. As far as rewards go, it’s among the most expensive. But it’s also the most sought after, and the ultimate reward, on many levels. Those who don’t earn it, want it. And those who do earn it tend to pay it back in various ways.

Here, we list some of the common questions and reservations that business leaders may have about spending money on incentive travel, and address those concerns. We hope that by doing this, we’re helping to build a business case for incentive travel, and show that it’s not just aspirational – it’s financially responsible.

When structured strategically, incentive travel represents a high-impact investment, not merely an expense.

Unlike cash, which is often spent on everyday expenses and quickly forgotten, experiential rewards like memorable trips generate emotional engagement, long-lasting memories, and peer admiration, which significantly drive discretionary effort. According to Incentive Research Foundation findings: non-cash incentives are “50% – 150% more likely to be linked to retention, satisfaction, and performance” ¹. Consequently, the majority (55%) of senior management now view incentive travel as “essential” ².

In short: incentive travel is akin to high-quality client entertainment, not a standard dinner. The investment is higher, but the returns in terms of motivation, loyalty and performance are markedly amplified.

Gains include increased sales, faster pipeline conversion, improved retention, and higher engagement.

Additionally, you can forecast other significant financial outcomes from well-designed incentive travel programs, such as:

1. Improved customer lifetime value (CLV): Engaged sales teams build stronger customer relationships, increasing repeat business and cross-selling opportunities.
2. Enhanced partner/channel loyalty: In industries reliant on trade partners or distributors, incentive travel strengthens partnerships that drive more consistent revenue.
3. Cost avoidance through consolidation: By replacing multiple smaller, ad hoc incentives with a single, high-impact program, companies can avoid duplicated spend and reduce administrative overhead.
4. Longer-term performance lift: Incentive travel has a residual effect, with participants maintaining higher performance levels even after the trip has ended and they have returned to work.

Incentive travel helps to mitigate key risks like talent turnover, disengagement, and missed performance targets in the following ways:

1. Talent turnover: High performers are more likely to stay with a company that recognises and rewards their contribution in a meaningful, memorable way. Travel incentives create a sense of belonging and value, reducing the likelihood of them leaving for a competitor.
2. Disengagement: Experiential rewards foster stronger emotional connections to the organisation than cash bonuses, which are often forgotten after being spent. This emotional connection translates into higher engagement, particularly when trips are well-communicated and resonate with the target audience.
3. Missed performance targets: Clear, well-publicised incentive programs set tangible goals that employees actively strive towards. This aligns effort with strategic priorities, creating a performance “pull” effect throughout the qualification period.

Think of it as preventative maintenance on machinery: strategic investments now (in recognition and motivation) prevent larger, more costly breakdowns later (in recruitment, training, or lost productivity).

How can costs be controlled without eroding the reward effect?

Cost management comes from precise participant selection, negotiated supplier rates, logistical efficiency, and focusing on trips that directly support strategic goals – not from cutting the experience itself. High-performing programs focus resources where they generate the greatest returns, often using tiered participation models and regional destinations to optimise spend.

At Achievement Awards Group, we accomplish this by leveraging long-standing partnerships with vetted suppliers to secure preferential rates without compromising quality. Our in-house planning and delivery teams ensure seamless logistics, avoiding costly handovers, while transparent pricing models give Finance full visibility and control over spend.

It’s just like shifting from bulk procurement to tailored supplier agreements, where smarter contracting delivers better value without inflating the costs.

What KPIs and reports will Finance receive?

Finance teams can gain clear, auditable reporting on both commercial and people outcomes: revenue growth, margin improvement, retention shifts, and engagement scores. Where relevant, sustainability metrics can also be reported, enabling full transparency.

What’s the payback period?

Most structured incentive travel programs pay back within one to three quarters. Costs are largely fixed per participant, while the performance uplift compounds quickly, often covering the initial spend within the same fiscal year. 

It’s a bit like replacing an ageing fleet with new, efficient vehicles. Yes, there is a higher up-front investment, but the lower running costs and stronger brand perception pay off over time.

What role can sustainability play in ROI?

Sustainability has become an important dimension of ROI. Aligning travel with responsible sourcing, local economic benefit and reduced environmental impact strengthens employer branding, appeals to younger employees, and supports ESG disclosures that can positively affect investor confidence. Large organisations are already reporting reduced travel spend as a by-product of their sustainability commitments, showing that responsible travel can be both cost-efficient and future focused.

How do we avoid “negative optics” or perceptions of lavish spend?

The key is to design trips that are aspirational, authentic, and strategically aligned rather than ostentatious. Experiences with a clear purpose, meaningful recognition moments, and transparent use of funds deliver prestige without excess, avoiding the perception of wastefulness.

But, ultimately, the best way to address those perceptions is by showing that the spend is worth it – and that it is not frivolous, inappropriate or over-the-top because the rewards and returns are clear and often measurable.

Landing the argument for incentive travel to take off

The pitch is short but comprehensive: Incentive travel delivers measurable financial returns, mitigates risk, and strengthens organisational culture when executed strategically. With controlled costs, clear KPIs, and a payback period within the fiscal year, it’s one of the most efficient ways to recognise and drive performance.